PTT Oil and Retail Business Public Company Limited (OR) has reported its yearly consolidated financial statement of 2020 through the Stock Exchange of Thailand as follows;
In 2020, OR reported a net profit of 8,791 million baht, decreased 19.32% from a net profit of 10,895 million baht in 2019. The decrease in net profit was primarily due to a drop in sales and services revenue, higher depreciation and amortization expenses from the expansion of PTT stations and Cafe Amazon outlets and the reclassification of expenses according to the new accounting standard (TFRS).
OR recorded total sales and services in the amount of 428,804 million baht, a decrease of 148,330 million baht (-25 .7%) from the previous year. This was primarily attributable to (1) the significant declines in global petroleum product prices during the period, attributable to a combination of the price war between the Organization of Petroleum Exporting Countries and Russia, which unexpectedly increased global oil supply coupled with a reduction in global demand for petroleum products attributable to the COVID-19pandemic, and (2) decreases in our volumes of petroleum products sold as a result of the COVID-19 pandemic in Thailand, where the government imposed widespread travel restrictions, closure orders, quarantines, curfews and other government measures intended to contain the COVID-19 pandemic in April 2020. Nevertheless, sales volumes began to increase accordingly when the Thai government began easing COVID-19 control measures in May 2020.
By 4Q/2020, the sales volume increased to almost the pre-COVID-19 level, except for jet fuel that was still affected by international flight restrictions and the significant decrease in global air travels, and expect LPG for the household sector that also declined due to the Thai economic slowdown.
The non-oil business segment experienced a reduction in sales from convenience stores, while the International business segment also experienced a decline in sales volume and selling price, particularly in jet fuel.
Nevertheless, a net profit of 8,791 million baht was better than what analysts had expected. Capital Nomura Securities (CNS) estimated OR’s net profit in 2020 at the amount of 8,469 million baht. Meanwhile, Bloomberg Consensus showed a forecast net profit of OR at 7,890 million baht.
In addition, the Board of Directors of OR approved a resolution to pay a dividend payment at a value of ฿0.10/share on April 28, 2021. The ex-dividend date is March 16, 2021.